ABC ltd wants to issue huge amount of shares to raise its capital but the directors decided not to dilute the control to more people, which shares should they issue:

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KollegeApply · Accepted Answer

Preference shares Explanation: • Preference shares provide capital to the company without diluting control, as preference shareholders generally do not have voting rights in most company matters. • Equity shares give voting rights and hence dilute control, as more people become part-owners of the company. Therefore, if the directors of ABC Ltd. want to raise capital without diluting control, they should issue preference shares.

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